According to recent reports by a survey of brokers who sell coverage individually, health insurance premiums are showing the sharpest jump. The healthcare analysts of Morgan Stanley conducted the survey of 150 brokers. The April survey showed the largest increase in individual and small group rates in any of the quarterly periods that have been recorded. The average increases are in excess of 13% in the small group market and about 12% in the individual market. This news shouldn’t be that of a shock to those who were thinking of getting their health coverage in 2015. The same fact lies true for all kinds of insurance policies as there are reports that the premiums on all types of policies like health, car, life, homeowners and even on dental insurance policies are going to rise like never before. How will the middle-class households get their coverage when they have so many other costs to take care of?
Vital ways of lowering your insurance costs
Did you recently see your friend complain about paying his insurance premiums? If answered yes, you too must be wondering about the unnecessary investment of your dollars on them. But did you know that insurance is one of the major consumer purchases that you make? The fact is that the pleasure that you derive from buying a car or buying a home is much more than investing in your insurance policies. It is only during an unfortunate event that you understand the importance of paying your insurance premiums. Here are some ways in which you can lower the insurance policy costs and save your dollars.
- Know that all insurers don’t think alike: All insurance companies have their different insurance models that have been created to price out the risk that they’re involved in while insuring you. This is especially a fact when it comes to insuring bigger things like cars and homes. Hence the same coverage situation, cars, drivers, driving record may extort different premiums amounts from the insurers. So it is clear that the risk factors that are considered by one insurance company will not be the same with those that are considered by another insurance company.
- Make a comprehensive market research before buying: Since there are price differences, you have to make a comprehensive market research among various insurance companies. It is only after you get quotes from different companies that you should settle with one. If you make the mistake of settling down with the first insurer you come across with, you will not come to know if there are any other insurers who can offer you a policy at a lower price.
- Match your needs with your coverage: There are many indifferent people who don’t understand the meaning of getting sufficient coverage. The fact is that you shouldn’t purchase protection that you don’t actually need. When you have modest assets, you don’t require purchasing a huge liability ceiling on your insurance policy. Again at the same time, you also have to ensure that you’re not forgetting the actual risks that need to be protected. Check if your computers and mobile devices are also covered.
- Don’t leave out the discounts: Most insurance companies offer a number of discounts when you take multiple insurance policies from them. If you leave such discounts on the table, you will make a mistake. In fact, there are many companies that offer discounts to all those customers who take policies without paper. There are some others who are even willing to offer discounts if you make electronic payments. Such adjustments can be taken into account if you wish to save your dollars.
- Save enough for the right deductible amount: Deductible is that portion of the insurance premiums that you have to pay out of pocket in the event of an emergency. Only after you start paying this amount, will the insurance company start paying off the insurance benefits. However, this deductible has to be paid while taking out the policy. Hence, you have to save enough money so that you may be able to pay off the right deductible amount that will help you qualify for discounts.
- Do your homework right: Before you start shopping for an insurance policy, you should do your homework right. Inform yourself about the information with regards to your respective insurance policy. The more you’re educated, the lesser will be the chances of being duped by the lender.
While you have lots of obligations to pay towards like your student loans and your car loans, you should always try your best to lower the insurance premium costs so that you can save your dollars here and there and redirect them towards the more necessary expenses. Follow the tips mentioned above.